'Bush Lied'? If Only It Were That Simple.

[Big Don]

Gas prices have more than doubled since the Dems took control of Congress. - Thats 1 right.
But, I think you're wrong on the distribution of wealth.
Taxes are 15%, Oil Company costs and profits are 17% as of 2007.
http://www.eia.doe.gov/bookshelf/brochures/gasolinepricesprimer/

Also, you're saying that limits on drilling are the cause of recent record highs, and not uncontrolled and unregulated speculation?

You, as a business owner, should recognize that any costs incurred by the business are passed on to the consumer, by way of higher prices. The proposed "Windfall Profits taxes" can only raise the cost of fuel.
Lets shut down the stock markets! That will make the prices of everything cheaper, since no one will be able to profit from speculation, right?
WRONG.
Speculation is another word for investing, anyone who buys a share of "Fictional Company One" is SPECULATING that their shares of "Fictional Company One" will, in the future, increase in value.

 

[Bob Hubbard]

The difference between the Stock market and Oil Speculation is, if a stock is trading at $130, I need to come up with $130. If oil is trading at $130, I only need to come up with $8. Big difference.

 

[Big Don]

But the supply isn't the problem. There's plenty available.

Except, we aren't allowed to get at the vast majority of ours. Not allowing exploration for new oil fields, or exploitation of known oil reserves may not make prices go up, but, allowing the drilling for and refining of domestic sources of oil would certainly bring the price DOWN.
Supply IS the problem. We haven't built a new refinery in THIRTY years. Has our use not increased exponentially since 1978?

 

[Bob Hubbard]

Domestic demand is down.
The existing refineries are running at 85% of capacity, at last report.

Also, the US oil companies stated years ago that Domestic Oil wasn't worth going after until gas went past $4 a gallon. Now they are demanding access to that oil. It's not a coincidence.

I repeat, theres plenty of oil there.

How much conventional oil is there left in the ground? Close to 2 trillion barrels, according to Don Paul, Chevron's chief technology officer.

The "geological endowment" of conventional oil--that is, the amount of oil in the Earth--once totaled about 3 trillion barrels, he said during a presentation at the Dow Jones Alternative Energy Innovations conference here. We've used about 1.1 trillion. Oil companies with current technologies can't get it all out of the ground, so maybe there is a trillion barrels left for human consumption.

http://news.cnet.com/8301-10784_3-9803819-7.html

 

[Twin Fist]

lift the heavy tariff on flex fuel imports
mandate flex fuel vehicles
build 3 refineries and open drilling everywhere there is oil
tell the saudis to suck it

problem solved

 

[Big Don]

You cannot legislate innovation. It just doesn't work.

 

[Bob Hubbard]

lift the heavy tariff on flex fuel imports
mandate flex fuel vehicles
build 3 refineries and open drilling everywhere there is oil
tell the saudis to suck it

problem solved

Concerns are if taxes are lowered or dropped that it wouldn't translate to lower consumer prices.

Building new refineries IS needed, but wouldn't effect prices or supply for 3-4 years.

As to telling the Saudi's to suck it, I agree. Problem is, they aren''t where we get the bulk of our oil from.

The top sources of US crude oil imports for March 2008 were Canada (1.795 million barrels per day), Saudi Arabia (1.535 million barrels per day), Mexico (1.232 million barrels per day), Nigeria (1.154 million barrels per day), and Venezuela (0.858 million barrels per day).
Source-US Government

 

[Twin Fist]

oh Bob, i know, but it would be very nice to finally be able to tell the WHOLE middle east "screw you guys, we have tried to help, you clearly dont want it.
From now on? we are leaving you alone. Dont mess with us."

 

[Bob Hubbard]

Remember, the Saudi embassy is the only one I'm aware of that is protected by the SS. Wonder why....

 

[Twin Fist]

I can think of two reasons.

1. Saudi oil, and thier good will is a national security concern. At least untill we can tell them to suck it

2. we give them special attention so they can try to pull some of thew heat off israel.

 

[Bob Hubbard]

How about : The Bush family has -extensive- business dealings with them.

 

[elder999]

How about : The Bush family has -extensive- business dealings with them.

I also recall (though not necessarily correctly) that a Saudi prince was Andover, class of 1964, same as George W.

 

[Bester]

Wade through enough stuff, it's an interesting web.

Here. It's old, but a start.
http://www.americanprogress.org/issues/2004/06/b99415.html

 

[Twin Fist]

americanprogress?

yeah, they are sure to be un-biased

 

[Bob Hubbard]

Take a source, toss away the biases, and see what's left that sticks.

 

[5-0 Kenpo]

Doesn't change the fact that in '06 Exxon Mobile made profits then any other company in the U.S.

Gas companies make their profit through volume, not the individual price of a gallon of gasoline.

The U.S. used about 510 billion litres (138 billion gallons) of gasoline in 2006, of which 5.6% was mid-grade and 9.5% was premium grade.

source: http://en.wikipedia.org/wiki/Gasoline#Usage_and_pricing

if you figure a simple 17% profit on gasoline alone, that would be a profit of $23,450,000,000. That does not include diesel, gasoline fuel mixtures, government sales for such things as the military, natural gas, the use of oil for machinery and manufacturing, and the countless other things that crude oil is distilled into.